Pages

Saturday, 31 December 2016

HC on Friday said the money
collected from buyers for project completion has to be deposited in an escrow
account and only 10% of the corpus can be used to refund payment to those who
want to opt out.

NEW DELHI: In a move that may help in handing over delayed
residential projects, theDelhi
high courthas askedUnitechand its homebuyers to work out a formula
under which the developer uses 90% of the funds collected from them to
construct a project, if a majority of buyers votes in favour of completion.

HC on Friday said the money collected from buyers
for project completion has to be deposited in an escrow account and only 10% of
the corpus can be used to refund payment to those who want to opt out.

The court also asked the re lator to pay twice the
penalty provided for in the agreement with buyers in case a project is delayed
by over two years, and 1.5 times if the delay is less than two years. All
projects have to be completed in twothree years, the court ruled.

Realtors said the ruling will also impact other
delayed projects. Nearly half the projects in NCR are running behind schedule
and buyers are losing patience, prompting several of them to seek refunds,
while others are pushing for expeditious execution.

However, the court ruled against the liquidation
of Unitech in spite of the fact that the builder is short of funds. " An
order of liquidation of the company at this stage would not serve the interest
of any stakeholder, including those homebuyers who have got decree in their
favour."

The court noted that homebuyers, who obtain a
decree, would have to stand in the queue of unsecured creditors for seeking
execution of decree as their priority and rights to se cure execution as
unsecured creditors would stand much below workers, statutory creditors or the
secure creditors who have stronger claims on the company . Considering the
impact of liquidation and the feasibility of the homebuyers getting possession
of flats as promised by the developer, the court said, "It would be in the
interest of homebuyers to work out a scheme through which the project is
completed."

Unable to refund money , Unitech had recently
offered to allot plots to some buyers who wanted to exit one of its projects,
citing delay.

While several buyers have petitioned various
courts, the HC has said all proceedings should be kept pending, including those
filed in future.

Under the scheme worked out by the court, Unitech
will open an escrow accounts for each of housing projects, where all the money
collected from existing home buyers or proceeds from fresh sales would be
deposited. A representative of the buyers will be one of the signatories of the
account and funds will be used for only constructing of the project.

A designated refund account will be set up for
each project in which 10% of the proceeds from the customers will be
transferred. The refund will be made over a period of 12 months from the date
of approval of the scheme.

The scheme of arrangement will be monitored by
registrar of the court. A meeting of the buyers of each projects will be
convened by the company under the chairmanship of an appointed lawyer.

Wednesday, 28 December 2016

The economic offences wing of Coimbatore city
police has requested the public to come forward to file complaints against real
estate frauds

COIMBATORE: The economic offences wing of Coimbatore city police
has requested the public to come forward to file complaints againstreal estatefrauds.

The city police have recently arrested M
Venkatesh, managing director of Star Land Associates at Kavundampalayam, who
had collected 1.50 lakh each from more than 52 people by promising them a home
but never delivering them any apartment.

"Several fake real estate companies continue
to cheat people by promising homes at very cheap rates. This particular case,
in which more than 70 residents from Kavundampalayam, Periyanaickenpalayam and
Karamadai were duped of several crores, was reported last October. "They
were promised 148 plots at Pilichi village near Karamadai under the name
'Kuberipura Nagar'. The case was registered with the district crime branch and
transferred to us only this month. We have so far received 25 complaints but we
expect more people to come forward to ensure we get all details before we
chargesheet the case," said a police officer attached to the economic
offences wing .

The real estate owner, Venkatesh, was arrested and
is now out on bail, added the police officer. "He had given advertisements
in local television channels and newspapers, promising land to those who paid
1.50 lakh in instalments. Many paid 2lakh as well. Only after people paid up,
did they realise the land did not belong to Venkatesh," said the officer.

A few realized they had been cheated only when he
refused to register the land in their name.

Last October, the residents had approached the
district collector and subsequently, the district crime branch registered the
case. Lakshmanan, one of the victims, immediately approached the owners and
demanded his money. They had promised that they would return it in three
instalments but in vain.

Meanwhile, residents came to know that the owners
of Star Land Associates began expanding their business, cheating people in
Chettipalayam and Madampatti as well. "We petitioned the collector and
also registered a case after which the police arrested the owners," said
one of the residents.

"So far, 52 depositors have come forward and
we have registered their complaints. Close to 90.58lakh needs to be
recovered," said police inspector, R Muruganantham.

He added that many such real estate companies were
mushrooming in the city and warned public against getting cheated.

Monday, 26 December 2016

With increasing competition and piling
inventories, particularly in the luxury segment, some builders are spending as
much as Rs25 crore on a sample flat

Sales of the luxury
houses have been declining over the last few years, according to Liases Foras,
a real estate advisory firm. Photo: Aniruddha Chowdhury/Mint

Mumbai:How does one sell aRs.10
crore apartment in a depressed market for up-market realty? The answer some
builders have found is to first spend as much asRs.25
crore on building a sample apartment, complete with the inner bells and
whistles that a likely owner of such a home is likely to have.

Creating
sample flats to lure customers both in the mid-and high-end segment has been
one of the age-old marketing strategies by developers.

However,
with increasing competition and piling inventories particularly in the luxury
segment, developers are now willing to throw every penny to entice potential
home buyers in showcasing what they are offering to the customers.

According
to Liases Foras, a real estate advisory firm, sales of the luxury houses have
been declining over the last few years.

In its
latest report released on 15 August, luxury homes which cost aboveRs.2 crore
dropped by 10% in the June quarter while the overall home sales in India’s top
eight cities grew 9% during the same period.

Real
estate firms such Omkar Realtors & Developers, Lodha Group, Oberoi Realty
Ltd and Rustomjee Developers are splurging on creating sample flats in an
effort to attract high networth individuals and ultra-rich buyers including
Bollywood stars for its luxury flats. These developers are spending betweenRs.4 crore
toRs.25
crore on building the show flats, sourcing decorative items from abroad and
hiring international designers and architects for the purpose. The normal spend
on building sample flats for a premium home was around justRs.70-Rs.80 lakh
four-five years ago,

This is
over and above the other marketing tactics like offering incentives by
developers to woo customers. Common gifts to customers include cars, gold
coins, free parking spot or even international flight tickets but few developers
in the recent past have gone beyond rolling out freebies to woo potential
buyers.

For
instance, earlier this year, Mumbai-based DB Realty offered its clients a
helicopter tour of its luxury residential project DB Crown at Prabhadevi to
provide an aerial view of the construction site. Others like Piramal Realty
organized flower shows at the project site of its first residential project in
Thane end of last year to help gain popularity of the project.

“There is
an aspirational value attached for customers of such high-end and luxury homes.
Enhancement in product and visual appeal is very important in the current
stressed market and developers would continuously look for ways to cut through
the clutter. Hence unlike lower priced homes where it is easier to sell,
builders would increase their effort in creating sample flats especially to
showcase the opulence,” Pankaj Kapoor, chief executive officer (CEO), Liases
Foras.

Other
realty brokers say that sample flat is one of the essential tools used by
builders currently to boost sales and confidence among customers and fix the
lack of trust with the builder community.

For
instance, Mumbai-based Omkar Realtors & Developers has spent aroundRs.25
crore only on creating the 8,000 sq.ft. show flat for its uber-luxury project
‘1973’ at Worli in South Mumbai. London-based design company Hirsch Bendner
Associates has been hired to design the sample flat. Customised kitchen from
Germany-based firm Alno has been used for the sample apartment.

There’s
more in store. Collectables including artifacts and artworks are sourced from
across 50 countries just for the sample flat. Swarovski artworks, paintings
worth aroundRs.8-9 lakh by renowned artists like Kalpana Shah and
Jagdish Chandra have been bought to decorate the walls of the show apartment.
Furnishings and upholstery have been imported from Spain, Italy and the UK,
said Amar Tendulkar, president (design), Omkar Realtors & Developers.

“Through
the sample flats, we are trying to cater to different categories of people right
from movie stars to corporate leaders who understand and have taste for luxury.
So what we are doing is how we do make this show apartment appeal to all of
them,” he said.

Mumbai-based
Oberoi Realty, country’s second largest real estate firm, is also gearing up to
open its much awaited show flat for its luxury project 360 West to the buyers
this month. The company has spent as much asRs.8 crore on building sample flats for the project. The
Investment accounts 15-20% of the cost of a single flat in the project.
Apartments in the project are sold aboveRs.45 crore.

“It is
imperative to do a show apartment or sample flats mainly to show the
transparency and communicating the world that this is the potential of the
product that we are selling,” said Vikas Oberoi, chairman and managing
director, Oberoi Realty Ltd.

According
to brokers and consultants, developers spend aroundRs.1-Rs.4 crore to build a typical show flat of a luxury
apartment in south Mumbai. “When people want to see something tangible or when
builders want to convince the buyers, making a sample flat is an effective tool
to boost sales. Sample flats are also used to fix the gap that people don’t buy
until they can’t see it,” said Prakash G. Rohiira, a real estate agent who
sells luxury apartments in south Mumbai.

For
Lodha’s World Towers, the upcoming residential project, the sample flat is not
a makeshift one. The company, which has tied up with Giorgio Armani as an
interior designer for the project, uses an actual 7,200 sq.ft .four-bedroom
apartment designed by Italian designer’s team to showcase to its customers. The
apartment has a sundeck, master bathroom with an outdoor Jacuzzi and a home
theatre lounge done in handcrafted gold leaf finish.

According
to Samujjwal Gosh, deputy chief executive officer (Pune) and executive
vice-president (marketing), Lodha Group, the concept of show flats have evolved
over the last 10 years and has become an essential part while marketing the
residential projects as it helps aid in their buying decision.

“Real estate
in India, especially in Mumbai has been transforming from a commodity sale
based on price (some 4-5 years ago) to an experiential, high involvement
purchase… Customers are looking for the best deal in the best product and this
prompts them to get into all aspects of pre, during and post sales,” Ghosh
said.

Prasoon
Bhat, a financial analyst which has bought a 3BHK flat forRs.12.5
crore at Omkar’s 1973, said sample flats help in aiding the buying decision as
it gives a better idea of what a buyer can expect of the flat. However, the
track record of the developer is the most important criteria when looking out
to buy a flat, he added.

“Normally,
when we see the floor plan, we cannot make out what we can expect. We can’t
think abstract. A sample flat gives a fair idea how it will shape up. When
buyers can visualize the apartment, they tend to get convince with the
product,” Bhat said.

Friday, 23 December 2016

The need for inclusion of features like ramps and Braille in modern
apartments is increasingly felt by citizens. Home buyers also express a need
for making the high-rises age sustainable.

NOIDA: In a bid to
uphold the model building bye-laws of 2016,Credai NCRhas
started encouraging builders to include the best practices while designing
their projects; especially the ones related to the provisions for creating a
barrier-free environment for the differently-abled and the elderly.

"We encourage all builders to adapt the green
building norms; especially the ones pertaining to the inclusion of the
differently-abled. The green certification needs a set of conditions to be met.
Adapting structures to suit the needs of the differently-abled is one such
norm," Manoj Gaur, president of Credai NCR, told TOI.

The need for inclusion of features like ramps and
Braille in modern apartments is increasingly felt by citizens. Home buyers also
express a need for making the high-rises age sustainable.

Real estate expert Jones Lang Lasalle (JLL) on
Monday shared a set of practices to influence builders across the country to
include the model building bye-laws of 2016.

Few of the points highlighted by JLL includes the
provision of parking on the ground floor, motorised wheelchairs for ease with
ramps, hand rails, easy signage for the visually impaired, elevators with hand
rails, easily accessible switches, special toilets, faster lift door opening
time, adequate sitting area for the elderly, evacuation route and refuge
provisions.

Building bye-laws are legal tools used to regulate
architectural design and construction factors of buildings to achieve orderly
development. They are essentially mandatory, and are meant to protect buildings
against earthquakes, fire, noise, structural failures and other hazards.

Piyush Gandhi, National Director, Project &
Development Services, JLL India, illustrates, "Do the current construction
norms require real estate developers to make specific provisions for the
differently-abled, disabled and senior citizens? They do — but in many areas of
the Indian real estateindustry, sufficient
implementation lags behind the on-paper regulations.

The Model Building Bye-Laws 2016 (Chapter 8), IS
Code 4963, CPWD guidelines give a detailed design and plan to provide a
barrier-free environment for the differently-abled and elderly. In fact, they
have a dedicated chapter on design provisions to be incorporated in any
building which modern builders can use while designing their projects.

"The future of construction and building lies
in sustainability. Builders automatically get the benefit of increased floor
area ratio (FAR) when they adhere to green norms. While most builders already
need to meet over 50% norms to gain the environment clearance, we now encourage
them to introduce a couple of more differentiators to be completely green
certified by special agencies," Gaur added.

Thursday, 22 December 2016

The reason: Mahim coastline and Marine Drive (Backbay) have been
officially redefined as “bay areas”.

MUMBAI:
The floodgates have opened up for construction near the city's coastline with
the Brihanmumbai Municipal Corporation (BMC) approving 24 projects near the shoreline around Girgaum
Chowpatty, Prabhadevi, Mahim and Shivaji Park over the past one year.

The reason: Mahim coastline and Marine Drive
(Backbay) have been officially redefined as "bay areas". A 2011 CRZ
amendment by the Union environment ministry said construction activity can be
restricted to only 100 metres from a bay instead of 500 metres.

The Mahim shoreline and the entire Backbay area,
extending fromNariman Pointand Cuffe
Parade to Girgaum Chowpatty, have been classified as bay based on a report by
the National Hydrographic Institute in Dehradun. The reduction, criticised by
environmentalists and activists, was however, upheld by theSupreme Court.

The new definition of bay means developers can now
build much more with higher floor space index (FSI). The BMC's development plan
department has so far sanctioned seven redevelopment projects in south Mumbai
and 17 projects in Mahim and Dadar.

Among the bigger projects now out of CRZ is the
Nowroz Building plot on Hughes Road near Girgaum Chowpatty being redeveloped by
Arvindam Developers. The century-oldresidentialbuilding
was purchased by Pune-based developer Avinash Bhosale for Rs 150 crore five
years ago. A luxury skyscraper in partnership with global glamour brand,
Versace, is coming up here.

On the same Hughes Road stretch, two redevelopment
projects ofRohan Lifescapes(Pathare
Prabhu building and Ajinkya Mansion) are out of CRZ and cleared by the
municipal corporation. Builder Haresh Mehta of Rohan Lifescapes told TOI he has
another five projects in south Mumbai which benefit because of the bay
definition. Near Gamdevi temple, Devtaru Homes LLP redeveloping Kapol Nivas has
procured preliminary permission for construction after the plot was removed
from CRZ. Yogesh Bhavan (Mesacon Triumph Developers) at Hughes Road and other
property on the same road redeveloped by Landmark Shelter too received
clearance.

Early this year, the state coastal management
authority, MCZMA, cleared the project by builder Earth Graphic on the ground
that the site is beyond the 100m CRZ setback line from Back Bay. The
dilapidated tenanted property is on Jagannath Sunkersett Road in Girgaum. The
MCZMA had also sought the opinion of the state advocate general, who said the
project site was beyond hundred meters of the high tide line.

In July 2014, TOI was the first to report on how
the state coastal authority had redefined the Mahim coast as a bay. The
developer of a Prabhadevi plot became the first big beneficiary as the bay
definition immediately increased the development potential of its plot manifold.

The Prabhadevi plot near the sea is the 5.5 acre
Hindoostan Mills, jointly developed by Hubtown and Wadhwa Group. They had
announced two 55-storeyed luxury towers, making it the city's first mega
building project kissing the sea.

After Mahim, it is now builders in south Mumbai
who are benefiting from this relaxation in the CRZ norms.

But concerned activists said civic infrastructure
will be futher burdened. "The issue here is not only the definition of the
bay or the distance from the high tide line, but whether these areas have the
infrastructure. Will such indiscriminate addition of built space affect the
lives of the existing residents adversely? Unless we have satisfactory answers
to these questions, the bonanza is likely to be counter-productive," said
housing activist and expert Chandrashekhar Prabhu.

Environmentalist Debi Goenka said the 2011
amendment has resulted in a situation where the builder lobby has successfully
been able to circumvent the CRZ along the entire west coast of Maharashtra.
"The state government should have asked the environment ministry to
rectify this mistake," he said.

Goenka added, "The project sites are in some
of the most congested parts of the city that has poor infrastructure. A huge
new project with very high FSI will add to traffic problems and further
aggravate air and noise pollution levels, and deprive local residents of their
water supply."

Tuesday, 20 December 2016

The base size of the issue is $550 million with an option to retain
oversubscriptions. The seven-year bonds will be easily tradable.

MUMBAI:
Days after Grasim & Aditya Birla Nuvo announced a $9-billion merger plan,
Birla group companyHindalco's Novelis unit will launch a bond sale in the US to
raise as much as $1.1 billion to refinance debt.

Morgan Stanley leads an investment banking group
that includes Barclays, Bank of America Merrill Lynch, Citi, Deutsche andHSBC, said people with knowledge
of the matter. The money will go toward refinancing bonds that mature in
December 2017.

The base size of the issue is $550 million with an
option to retain oversubscriptions. The seven-year bonds will come under Rule
144A of US security regulations that make them easily tradable. The aluminium
maker is looking to take advantage of demand for Indian bond in global market.

Demand for debt instruments of Indian companies
has gone up after the global bond market was roiled byBrexitand amid
a climate of zero interest rates as central banks look to bolster faltering
economies.

A Birla spokesperson said, "In line with
group policy, we do not comment on market stories." There was no response
to emails sent to US-based Novelis at noon on Sunday. Investment banks could
not be immediately reached. If the company doesn't raise the full amount
through dollar-denominated bonds, it may mop up the rest through external
commercial borrowings or offshore loans. Novelis and Hindalco's Canadian arm are
already in talks with some large global banks, which are likely to extend
credit lines, said people cited above.

BREXIT EFFECTIndian borrowers are increasingly tapping the
dollar bond market after Britons voted to exit theEuropean Union, an event that
sent bonds reeling. Three-fourths of global bonds yield now less than 2%,
leaving investors with few avenues to put their money in. Global investors are
factoring in zero interest rates from European Central Bank and Bank of Japan
for a few more years and US Federal Reserve is likely to postpone the next rate
increase to 2017, increasing lure of Indian bonds.

Hyderabad-based Greenko Group raised $500 million
by selling bonds to overseas investors last week. In 2010, Novelis raised a
little over a billion dollars via bonds denominated in that currency. Those
seven-year, 8.375% bonds are now rated at speculative Ba2.

ALUMINIUM DEMANDChina's economic slowdown had seen aluminium prices
slump, hitting their lowest since 2009 in November last year. Excess supply
from China hit Indian producers badly but Novelis has managed to turn around
its operations. "Europe and China currently utilise 50% of Novelis'
capacity," Religare Institutional Research said in a May 28 note.

"Going forward, the company expects to
increase utilisation levels by innovating and customising the product
portfolio... By FY17-end, existing US capacity is expected to be utilised
fully. The new auto line in North America is scheduled to be ramped up by FY17."

Kumar Mangalam Birla-led Hindalco Industries on
Friday reported a near fivefold jump in standalone net profit for the quarter
ended 30 June, helped by benign input costs and rise in aluminium production.
In the June quarter, net profit rose to Rs 294.07 crore from Rs 61.10 crore in
the year ago. Revenue missed estimates, falling 11.4% to Rs 7,597.3 crore due
to a sharp decline in realisations.

Novelis, which contributes close to half of the
Hindalco's consolidated revenue, reported an adjusted net profit of $33 million
compared with $24 million a year ago.

Hindalco Industriessharesjumped
nearly 6% about a week ago, hitting a 52-week high of Rs 152.15 last Monday
after Novelis added to investor confidence, reporting a 38% rise in net profit
in the June quarter. In the past year, Hindalco stock has surged more than 52%
beating the Sensex.

Friday, 16 December 2016

The civic amenities in the city
are not at par with the facilities in other cities that are in race for the
coveted opportunity which may hurt its ranking.

AURANGABAD: Expressing appresions over the
city bagging Union governments ambitioussmart
cityscheme, MP Chandrakant
Khaire on Saturday said the city is likely to miss the opportunity because of
poor civic amenities.

I do not think we could make the cut even in the second attempt. The
civic amenities in the city are not at par with the facilities in other cities
that are in race for the coveted opportunity which may hurt its ranking, he
told TOI on the side lines of the district development coordinating and
monitoring committee (DISHA) meeting.

Highlighting civic issues, Khaire said that the pathetic condition of
roads, increased number of potholes and aggravated water scarcity are likely to
leave a negative impact on the ranking. "We do not have a proper water
distribution system, which has led to scarcity. The condition of roads,
streetlights and other civic amenities are eqally appaling," he said
adding that the city roads are so bad that the high court had to take
cognisance of it.

Khaire also alleged that the municipal authorities did not take local
MLAs and other political leaders into confidence while preparing the smart city
project. "These representatives have been working for the well-being of
the city since the past few decades and thus have rich experience in this
regard. They could have contributed significantly to the project but the
municipal authorities avoided discussing the issue with them," he said.

Interestingly, the civic authorities have invited suggestions and
opinions from more than 1.25 lakh people.

The civic body recently submitted a 92-page document to the central
government highlighting its vision to change the face of the city. The civic
body has highlighted that it would use GPS equipped garbage collection vehicles
and dumpsters for effective handling of waste.

However, the municipal authorities are quite optimistic about the
project saying that they have prepared a focused and error-free proposal that
has brightened the changes of the city getting berth in the second list of ten
cities likely to be announced by August 15.

Thursday, 15 December 2016

NEW YORK: A data breach at 20U.S.hotels operated byHEI Hotels& Resorts forStarwood,Marriott,Hyattand Intercontinental may have divulged
payment card data from tens of thousands of food, drink and other transactions,
HEI said on Sunday.

Norwalk,
Connecticut-based HEI, which is privately held, said malware designed to
collect card data was found on HEI's systems.

The malware was
discovered in early to mid-June on payment systems used at restaurants, bars,
spas, lobby shops and other facilities at the properties, Chris Daly, a
spokesman for HEI, said in emails and phone calls.

The number of
customers affected is difficult to calculate because they might have used their
cards multiple times, Daly said. About 8,000 transactions occurred during the
affected period at the Hyatt Centric Santa Barbara hotel in California, and
about 12,800 at the IHG Intercontinental in Tampa, Florida, Daly said.

The malware
affected 12 Starwood hotels, six Marriott International Inc properties, one
Hyatt hotel and one InterContinental Hotels Group PLC hotel. It was active from
March 1, 2015 to June 21, 2016, with 14 of the hotels affected after Dec. 2,
2015, HEI said on its website on Friday.

Marriott and IHG
declined to comment. Representatives from the other hotel groups did not
respond to requests for comment.

HEI said outside
experts investigated the breach and determined that hackers might have stolen
customer names, account numbers, payment card expiration dates and verification
codes. The hackers did not appear to have gained PIN codes, since those are not
collected by its system, it added.

The company has
informed federal authorities and has installed a new payment processing system
that is separate from other parts of its computer network.

Tuesday, 13 December 2016

"So meeting the challenges of
urabanisation, getting India ready for the bigger picture, the preparedness and
responses is absolutely crucial. So bringing expertise is one aspect to
that," she said at function.

NEW DELHI: The UK on Friday
expressed its keeness to actively participate in Prime Minister Narendra
Modi's ambitious project to develop smart cities across India.

"Prime Minister Modi
is deeply ambitious and we want him to be successful when it comes to the
delivery of smart cities. And we know we have the assistance and expertise to
really add value," UK International Development Secretary Priti Patel said
here.

"So meeting the
challenges of urabanisation, getting India ready for the bigger picture, the
preparedness and responses is absolutely crucial. So bringing expertise is one
aspect to that," she said at function.

Earlier in the day, she met
with Urban Development Minister Venkaiah Naidu and announced the UK will share
its skills and expertise to drive forward India's vision for new smart cities
and boost opportunities for new businesses.

Stressing that the UK and
India share unique relationship, Patel said the referendum in the UK has
"now redefined" the relationship and "elevated it in terms of
our place in the world.

"...development
opportunities between the UK and India and also India and the rest of the world
are absolutely enormous," she said terming India as a "growing and
thriving economic power house".

She said counter terrorism
and national security are the areas where "we stand shoulder to shoulder
with India".

During her three-day India
visit, she will call on Modi and several ministers. She will also meet the UK
and Indian business, industry and investment representatives. She
will call on the Madhya Pradesh Chief Minister in Bhopal.

She also called on Finance
Minister Arun Jaitley to discuss ways in which the two governments can
strengthen links between key economic institutions and centers of excellence in
the two countries.

The two ministers also
discussed the transformed UK-India development partnership which was underlined
by Modi's UK visit late last year.

An official statement said the UK support announced by Patel will come
from the UK's Department for International Development and includes technical
support for 'Smart Cities Mission' which will see British expertise helping
plan, design and build smart cities.

Saturday, 10 December 2016

The update comes a day af ter the civic body uploaded joint survey maps
and list of encroachments, but without survey numbers. Old sketches appeared
ambiguous.

BENGALURU:
Faced with criticism that its ongoing drive against storm water drain
encroachments was mired in secrecy and based on outdated maps, theBBMPon Sunday uploaded the list of illegal structures on its
website, with zone and ward details. The civic body has reques ted citizens to
verify their properties and voluntarily remove encroachments.

The update comes a day af ter the civic body
uploaded joint survey maps and list of encroachments, but without survey
numbers. Old sketches appeared ambiguous.

However, Sunday's update gives details of wards
and areas where encroachments are located. But the encroachments continue to be
identified vis-a-vis survey numbers that prevailed decades ago.Bengaluru,
however, has moved on as land patches identified by their survey numbers and
spread over acres, have fragmented. They are now plots that bear municipal
numbers and are spread over a few hundred square feet. Experts said identifying
plots that are en croachments from a map based on old sur vey numbers is near
impossible.

As on Sunday , the website -http: bbmp.gov.in
-showcased drain encroachments with maps on six zones: East, West, South, RR
Nagar, Yelahanka and Dasarahalli.The wards and areas where encroachments have
been identified, are provided. While some maps are updated, some encroachment
details are displayed through old village maps. It is another matter, though, that
markings on many of the maps are indecipherable.

However, the list of constituencies does not
include Mahadevapura and Bommanahalli, where flooding happened due to encroach
ments and a demolition drive was carried out last week. Offi cials with the BBMP
said encroachment details pertaining to the two constituencies can be accessed
through the web link of the Survey Settlement and Land Records department
provided in the BBMP website.

The Saturday list on the BBMP website had given
taluk-wise details of encroachments, and violations were identified in 30
villages of Bengaluru East, 18 in Bengaluru North and 35 in North Additional.

N Harish, advocate and member of B.Pac, said even
details of the maps uploaded on Sunday are ambiguous as survey documents and
maps in the new link don't have sub-numbers under a particular survey number.
"In the absence of sub-numbers, it is difficult to establish the link of a
property , which has only municipal numbers. It is difficult to identify the
exact extent of encroachments and residents are left to accept whatever the
authorities at the ground level dictate," he added.

Thursday, 8 December 2016

Analysts believe that they have
the potential to invest in real estate projects to evade risk in a sluggish
market and undertake some hefty transactions.

NEW DELHI: At a time when
the Indian banks are adopting a cautious approach for funding real estate projects,
Private Equity (PE) funds and Non-Banking Financial Companies (NBFCs) seems to
have come to the rescue of the Indian real estate market.

Analysts believe that they
have the potential to invest in real estate projects to evade risk in a
sluggish market and undertake some hefty transactions.

REIT or Real Estate
Investment Trust is one another instrument that is being streamlined by the
Government to finance Real Estate sector. REITs allows anyone to invest in
portfolios of large-scale properties the same way an individual may invest in
other industries - through the purchase of stock.

In the same way,
shareholders benefit by owning stocks in other corporations, the stockholders
of a REIT earn a share of the income produced through real estate investment -
without actually having to go out and buy or finance property.

As per the VCC Edge, the
financial research platform of VC Circle that tracks investments, "During
first nine months of 2015, PE funds invested about USD 2.4 billion in the real
estate sector, across 53 transactions, surpassing the full-year investments of
USD 2.1 billion in 2014 across 80 deals."

The numbers are encouraging
for this year too. This year too saw the PE investment in real estate rose to
40 percent year on year in the quarter of March 2016 at Rs. 3840 crore of which
48 percent or Rs. 1870 crore went into residential segment.

Not only PE funds but NBFCs
have also been aggressively lending to the real estate sector. However,
analysts believe that NBFCs prefer to invest in residential projects rather
than commercial units mainly because of lower risk and quick returns.

"It is all the more
important now to manage finance in real estate sector than ever before. After
the RERA bill has been passed, large amount of the sales proceeds will have to be
kept in escrow account. This will create a huge burden on raising capital for
purchase of land and repayment of loans if taken against it. Getting external
finance is the need of the day for real estate to flourish," said Chairman
National Real Estate Development Council (NAREDCO), Rajeev Talwar.

"The main reasons for
interest of NBFCs and PEs in lending to the real estate sector are that they
are expecting higher rates of interest, hard assets as collateral and hoping to
trap sales proceeds in escrow accounts," said President National Real
Estate Development Council (NAREDCO), Parveen Jain.

Throwing further light and
to bring out the importance of on the role of NBFCs and PEs in Indian real
estate sector and various other aspects, NAREDCO under the aegis of Ministry of
Housing and Urban Poverty Alleviation (HUPA), Government of India is organizing
the 13th National Convention and Exhibition on August 19-20, 2016 at Hotel Taj
Palace, Diplomatic Enclave in New Delhi.

The convention aims to offer a platform to present
distinctions between conceptions and strategies from eminent Banking
Institutions, Private Equity players, Real Estate and Developer fraternity and
also promises participation of personalities from the diverse fields such as
Politicians, Bureaucrats, Contractors, and Material Suppliers across the
Nation.

Tuesday, 6 December 2016

Asia's third largest economy is
poised to list InvITs and REITs on the local bourses in a bid to attract more
global capital and improve liquidity for the two sectors.

BENGALURU: India should consider allowing domestic pension
and insurance money into rent-yielding commercial real estate and
infrastructure,Jones Lang LaSalle(JLL) president and CEO Colin Dyer said. This could
provide a fillip to FDI in real estate, which is on course to more than double
this year, the global head of US-based real estate services and investment
management firm said.

Asia's third largest economy is poised to list
infrastructure investment trusts (InvITs) and real estate investment trusts
(REITs) on the local bourses in a bid to attract more global capital and
improve liquidity for the two sectors.

Some of the foreign pension and insurance assets
managers have wondered why their domestic counterparts are restricted from
buying into instruments that behave like mutual funds, but are
inflation-indexed.

JLL chief said he could understand the reasons for
not allowing domestic pension or insurance money until now. There was a certain
lack of regulations which made these investments risky. But it's probably time
to revisit this along with all the new regulations, improving standards and
professionalism, Dyer told TOI during a visit to the country last week.

"We welcome any move to change the government
laws (to facilitate investments of Indian pension and insurance money). Typically,
international pension funds and insurers invest about 5-10% of their total
assets in income generating real estate portfolios," he added.

Infrastructure Leasing and Financial Services
(IL&FS) is in the final preparations to list some income generating assets
as the country's first InvIT to raise $750 million. Similarly, Blackstone
Group, the most prolific foreign investor in rent-yielding space market, has
been studying the possibility of listing an Indian REIT.

Indian government is seriously considering a move
to relax rules permitting pension and insurance money to be invested in InvITs
and REITs, sources familiar with the matter said recently.

FDI into Indian real estate stood at $3 billion
last year but the number is expected to touch $7 billion this calendar since
the overall investor confidence has improved due to the efforts undertaken by
the Narendra Modi government, Dyer said.

This includes having a code for Goods and Services
Tax (GST) finally; the government's commitment to tackle corruption and the
introduction of stringent laws such as the RERA (Real Estate Regulatory Act)
Bill which will help operate the sector more professionally.Moreover, the quality of products built has
improved over the years which is up to international standards, that adds to
the attractiveness, he explained.

JLL remains optimistic about the tenanted office
space sector which continues to generate stable yields for investors.
"With the regulations being cleared out and India having a potential for
listing REITs worth about $18 billion, we expect to significant attraction
levels," Dyer said. "We plan to bring our international funds to
invest in Indian commercial real estate in the near future," he said.

The residential real estate will remain slow for
another three to four quarters at least due to the drop in sales velocity,
after which an uptick is expected, he added.

Friday, 2 December 2016

A division bench of Justice PK
Jaiswal and Justice DK Paliwal while accepting an interlocutory application
directed the government to file a reply to the application within two weeks.

INDORE: Questions on the constitutionality
of thesmart cityproject were raised before the Indore
bench ofMadhya Pradeshhigh court on Friday, when the PIL
challenging the smart city plan was heard.

A division bench of Justice PK Jaiswal and Justice
DK Paliwal while accepting an interlocutory application directed the government
to file a reply to the application within two weeks.

Abhinav Dhanotkar, counsel for petitioner Tapan
Bhattacharya told TOI that the application sought answers on whether the smart
city plan was in accordance with Article 77 of the constitution or not.

Article 77 of the constitution states that any
scheme or project announced by the cabinet or minister of urban development or
even the prime minister cannot be the decision of the central government unless
authenticated by an officer authorized by Business rules of Government of India.

"The identity of the person who authenticated
the cabinet decision is also not clear and neither is the date when the
decision was authenticated," Dhanotkar submitted.

Thursday, 1 December 2016

Acknowledged by Forbes, these people are not just rich; they are “Richie-Rich” rich. We bring to you the richest real estate tycoons around the
world.

Lee
Shau-kee

Born
on January 29, 1928 in Shunde, Guangdong, China, Lee Shau-kee is a Hong
Kong-based real estate tycoon and majority owner of Henderson Land Development,
a property conglomerate with interests in properties, hotels, restaurants and
internet services. Bloomberg Billionaires Index listed him as the 19th richest
person in the world in 2012. According to Forbes, his personal wealth is
estimated to be $24.8 billion He is also affectionately known as Uncle Four.

Image
credit: ejinsight.com

Wang
Jianlin

Wang Jianlin, a 1954b born Chinese businessman and philanthropist,
serves as the chairman of the Dalian Wanda Group, which is also China's largest
real estate company, as well as the world's largest movie theater operator. He
owns 20% of the Spanish football club Atlético Madrid. After sixteen years in the People's Liberation Army,
Wang started working as the office administrator for the Xigang District in the
city of Dalian. The Economist called him "a man of Napoleonic ambition.

Image
credit: Bloomberg

Donald
L Bren

Born
May 11, 1932, he is an American businessman who is chairman of the Irvine
Company, a US real estate investment company, which he wholly owns. Bren built
his first house in Newport Beach with a $10,000 loan, in 1958. He began his
business career in 1958 when he founded the Bren Company, which built homes in
Orange County, California. Forbes, in its 2015 edition of, "The 400
Richest Americans", ranked Bren as the wealthiest real estate developer in
the US and 30th "Richest American" with an estimated net worth of
$15.2 billion. In 2008, BusinessWeek named Bren one of the top ten
philanthropists in the nation, with his contributions to various causes such as
education, conservation and research among other areas exceeding $1 billion.

Image
credit: businessinsider.in

Cheng Yu-Tung

Cheng Yu-tung owns Chow Tai Fook Enterprises, a conglomerate which
operates the Sheraton Marina Hotel and controls the publicly listed New World
group. Among their businesses, Chow Tai Fook is Asia’s largest jewellery retailer with New World having large interests
in real estate. According to Forbes, his net worth is estimated to be around
$14.4 billion.

Image
credit: Bloomberg

David
& Simon Reuben

Starting their careers by heavily investing in the Russian metals
market, the Reubens became the world’s third largest producer of aluminium. When the Russian business
environment turned sour, they sold all Russian assets and have since focussed
most of their business activities around the UK property market. They recently
completed the purchase of Metro International from Goldman Sachs in 2014 and a
data centre business, GlobalSwitch, buoyed by demand for cloud computing space.
Fobes estimates their net worth at $13.7 billion.

With the net worth of around $10.9 billion Joseph Lau is a Hong Kong
real estate investor who owns a 61% stake in Chinese Estate Holdings, one of
Hong Kong’s largest real estate
investors. He is a wine lover. It is estimated that Lau owns more than 10,000
bottles of red wine as well as a Boeing 787 private jet, and a multi-million
art collection. According to the Sunday Times, Lau owns one of the world's fine
least 10,000 bottles, and is an avid art collector. In May 2007, Lau was
revealed to be among the first seven purchasers of a Boeing 787 Dreamliner jet
for private use.

Image
credit: 2.bp.blogspot.com

​Gerald Cavendish Grosvenor

Gerald Cavendish Grosvenor is not only a landowner, businessman and
former Territorial Army Officer, but is also the 6th Duke of Westminster, with
a net worth significantly greater than Queen Elizabeth. Heading private
property group, Grosvenor Group, he owns hundreds of thousands of acres across
the UK, alone owning 190 acres in one of London’s most expensive neighbourhoods, Belgravia, adjacent to Buckingham
Palace. His net worth is estimated to be around $12.6 billion.

Image
credit: static.standard.co.uk

Pan Sutong

Pan
Sutong made the wealth of his fortune from his stake in Goldin Financial
Holdings, which has interests in real estate, wine and factoring. Beginning his
career trading with electronic brands such as Panasonic, Sutong went on to
found Matsunichi Digital Holdings Limited, which is now known as real estate
giant Goldin Properties Holdings Limited. An avid wine lover, Sutong has
purchased a number of wineries across France and in the famous Napa Valley
region. His net worth is around $8.6 billion.

Image
credit: bloomberg.com

Stephen
M Ross

Stephen
M Ross is an American real estate developer, philanthropist and sports team
owner. According to Forbes magazine, Ross has a net worth of $6.5 billion. Ross
began his career as a tax attorney at Coopers & Lybrand in Detroit. In
1968, he moved to New York City and accepted a position as an assistant vice
president in the real estate subsidiary of Laird Inc.

Image
credit: richestcelebrities.org

Hui
Ka Yan

With
an estimated riches of $6.2 billion, he is a Chinese businessman and the
founder and chairman of Evergrande Group, a Chinese real estate development
company. Xu Jiayin was born in a rural family in Jutaigang Village in China.